Gentex Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Gentex (NASDAQ: GNTX) reported second quarter 2026 net sales of $651.3 million, down 1% year over year, while gross margin expanded to 37.0%, up 280 basis points from 2025 and 320 basis points sequentially, helped by approximately $18 million of IEEPA tariff reimbursements recorded in cost of goods sold and favorable product mix.
GAAP income from operations rose 19% to $141.3 million, with GAAP net income up 19% to $114.7 million and GAAP diluted EPS up 26% to $0.54; adjusted EPS was $0.58. Automotive revenue declined to $560.1 million, while Premium Audio grew 16% to $51.7 million and Other Products grew 12% to $39.4 million, bringing non-automotive revenue to about 14% of total sales. Total auto‑dimming mirror units fell 10% to 10.4 million, driven by a 26% decline in international interior mirrors and weaker China revenue, which was down roughly 20% quarter over quarter, partly offset by North America strength and higher content per vehicle in Europe.
Gentex repurchased 2.7 million shares for $66.0 million in the quarter, and 5.9 million shares for $137.6 million year‑to‑date. For full‑year 2026, the company reaffirmed revenue guidance of $2.65–$2.75 billion, raised gross margin guidance to 34.5–35.5%, lowered operating expense and capital expenditure ranges, and maintained 2027 revenue guidance of $2.80–$2.90 billion, based on the mid‑July 2026 Mobility Global light vehicle production outlook.
Positive
- Gross margin 37.0%, up 280 bps YoY and 320 bps sequentially
- Income from operations $141.3m, up 19% versus Q2 2025
- GAAP diluted EPS $0.54, up 26% year over year; adjusted EPS $0.58
- Premium Audio revenue $51.7m, approximately 16% growth versus Q2 2025
- Other Products revenue $39.4m, approximately 12% year‑over‑year growth
- 2026 gross margin guidance raised to 34.5–35.5%; opex and capex ranges reduced
- Share repurchases $137.6m YTD, 5.9 million shares bought back
Negative
- Net sales $651.3m, a 1% decline versus Q2 2025
- Automotive sales $560.1m, down from $578.1m year over year
- Total auto‑dimming mirror units 10.4m, down 10% versus prior year quarter
- International interior mirror shipments down 26% year over year
- China revenue declined approximately 20% quarter over quarter
- Total other loss $4.5m, higher than $3.0m in Q2 2025 due to reserves and impairments
- Global light vehicle production 2026 expected about 3% below 2025 levels
News Explained
As of
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 24 | Q1 earnings report | Positive | +3.7% | Revenue growth, margin improvement, guidance update, and share repurchases accompanied a positive reaction. |
| Jan 30 | Q4 earnings report | Neutral | -4.3% | Results included 2026 guidance and capital returns, while the 24-hour reaction was negative. |
| Oct 24 | Q3 earnings report | Negative | -10.2% | Regional softness, tariff impacts, and reduced guidance accompanied a negative reaction. |
| Jul 25 | Q2 earnings report | Positive | +16.2% | VOXX acquisition completion, earnings growth, and increased guidance accompanied a positive reaction. |
| Apr 25 | Q1 earnings report | Negative | -2.8% | Lower sales, margin compression, reduced EPS, and tariff pressure accompanied a negative reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related reactions varied across the selected history, including both positive and negative 24-hour moves.
Key Terms
gaap financial
non-gaap financial
basis points financial
ieepa regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
ZEELAND, Mich., July 24, 2026 (GLOBE NEWSWIRE) -- Gentex Corporation (NASDAQ: GNTX), a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics, today reported financial results for the three and six months ended June 30, 2026.
Second Quarter 2026 Highlights
- Net sales of
$651.3 million - Gross margin of
37.0% , an increase of 280 basis points from second quarter 2025 and 320 basis points from first quarter 2026. - Income from operations (GAAP)
$141.3 million ; adjusted income from operations (non-GAAP)$141.7 million - Net income attributable to Gentex (GAAP)
$114.7 million ; adjusted net income (non‑GAAP)$122.9 million - Earnings per diluted share attributable to Gentex (GAAP)
$0.54 ; adjusted earnings per diluted share (non‑GAAP)$0.58 - Share repurchases: 2.7 million shares repurchased during the quarter for a total of
$66.0 million
Financial Summary
For the second quarter of 2026, the Company reported net sales of
"Our second quarter results demonstrate the importance of our strategy to grow through technology, product mix, and diversification," said Steve Downing, President and CEO. "While total mirror unit shipments and revenues came in approximately
For the second quarter of 2026, the Company's gross margin was
Consolidated operating expenses during the second quarter of 2026 were
Income from operations for the second quarter of 2026 was
Total other loss was
During the second quarter of 2026, the Company had an effective tax rate of
Net income attributable to Gentex for the second quarter of 2026 was
Earnings per diluted share attributable to Gentex for the second quarter of 2026 were
Segment Revenue
Automotive
Automotive net sales were
Premium Audio
Net sales from the Premium Audio category were
Other Products
Net sales from the Other Products category, which includes aerospace products, fire protection devices, medical technologies, biometric solutions and automotive aftermarket products, were
Share Repurchases
During the second quarter of 2026, the Company repurchased 2.7 million shares of its common stock at an average price of
Future Estimates
The Company’s light vehicle production assumptions for the third quarter of 2026 and calendar years 2026 and 2027 are based on the mid-July 2026 Mobility Global outlook for North America, Europe, Japan/Korea, and China. Based on this outlook, global light vehicle production is expected to decline approximately
| Light Vehicle Production ( Mobility Global mid-July light vehicle production forecast) | ||||||||||||||||||
| (in Millions) | ||||||||||||||||||
| Region | Q3 2026 | Q3 2025 | % Change | Calendar Year 2027 | Calendar Year 2026 | Calendar Year 2025 | 2027 vs 2026 % Change | 2026 vs 2025 % Change | ||||||||||
| North America | 3.87 | 3.97 | (3 | )% | 15.02 | 15.06 | 15.27 | — | % | (1 | )% | |||||||
| Europe | 3.85 | 3.87 | (1 | )% | 16.88 | 16.90 | 17.05 | — | % | (1 | )% | |||||||
| Japan and Korea | 2.92 | 2.93 | — | % | 11.42 | 11.95 | 12.07 | (4 | )% | (1 | )% | |||||||
| China | 8.11 | 8.36 | (3 | )% | 31.93 | 31.58 | 33.10 | 1 | % | (5 | )% | |||||||
| Total Light Vehicle Production | 18.75 | 19.13 | (2 | )% | 75.25 | 75.49 | 77.49 | — | % | (3 | )% | |||||||
Based on actual results through the first six months of 2026, the updated Mobility Global light vehicle production forecast, and the Company’s expectations for its Automotive, Premium Audio, and Other Products category, the Company is updating certain elements of its full-year 2026 guidance as noted below. The updated guidance reflects the anticipated impact of all known tariffs effective as of July 24, 2026.
2026 Annual Guidance (as of July 24, 2026)
- Consolidated Revenue:
$2.65 –$2.75 billion (no change) - Gross Margin:
34.5% –35.5% (previously34% -35% ) - Operating Expenses (excluding severance and impairments):
$405 –$415 million (previously$410 -$420m ) - Tax Rate:
16% –17% (previously16% -18% ) - Capital Expenditures:
$115 –$125 million (previously$125 -$140 million ) - Depreciation & Amortization:
$100 –$110 million (no change)
2027 Revenue Guidance
Based on the mid-July 2026 Mobility Global light vehicle production forecast and the Company's expectations for Automotive, Premium Audio, and Other Products revenue, the Company continues to expect calendar-year 2027 revenue to range between
Closing Remarks
"As we entered 2026, we knew geopolitical challenges would continue to pressure our business in China, and we also expected ongoing headwinds within our base mirror business. As a result, we anticipated that revenue growth would be more subdued than what we've historically delivered. Despite those challenges, the execution of our team has been some of the best I have seen during my time leading this Company. Across the organization, we continue to launch, develop, invent, and commercialize new technologies at a pace unmatched in our history, while maintaining a relentless focus on profitability, operational efficiency, and capital discipline. Concurrently, we have worked hard together with the VOXX team to improve VOXX's financial performance and we are well on our way to achieve the profitability targets we established post-acquisition. Similar to the Gentex team, the VOXX and PAC teams have recently developed several new product categories and developed business relationships with attractive long-term growth potential, to become meaningful contributors to our overall profitability only fifteen months after acquisition. Together, we are proving to be formidable competitors in our relevant industries. Our continued focus on quality, operational excellence, gross margin expansion, operating expense management, and capital allocation have enabled us to deliver strong earnings performance despite a challenging environment. Looking ahead, we believe the Company is well positioned to have a solid second half of 2026 with growth continuing into 2027 and 2028. Many of the investments we have made over the last several years in new products and technologies, including dimmable visors and sunroofs, our fourth-generation FDM, DMS/ICMS, advanced manufacturing capabilities, and other market expansion opportunities, are expected to begin contributing more meaningfully to revenue growth. When combined with our continued focus on operational excellence and financial discipline, we believe these investments will drive future growth to create significant long-term shareholder value," concluded Downing.
Safe Harbor for Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking statements. Forward-looking statements give the Company’s current expectations or forecasts of future events. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “hope,” “intend,” "likely", “may,” “opinion,” “optimistic,” “plan,” “poised,” “predict,” “project,” “should,” “strategy,” “target,” “will,” "work to," and variations of such words and similar expressions. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company’s control and could cause the Company’s results to differ materially from those described. These risks and uncertainties include, without limitation: changes in general industry or regional market conditions, including the impact of inflation; changes in consumer and customer preferences for our products (such as cameras replacing mirrors and/or autonomous driving); our ability to be awarded new business; continued uncertainty in pricing negotiations with customers and suppliers; loss of business from increased competition; changes in strategic relationships; customer bankruptcies or divestiture of customer brands; fluctuation in vehicle production schedules (including the impact of customer employee strikes); changes in product mix; raw material and other supply shortages; labor shortages, supply chain constraints and disruptions; our dependence on information systems; higher raw material, fuel, energy and other costs; unfavorable fluctuations in currencies or interest rates in the regions in which we operate; costs or difficulties related to the integration and/or ability to maximize the value of any new or acquired technologies and businesses; changes in regulatory conditions; warranty and recall claims and other litigation and customer reactions thereto; possible adverse results of pending or future litigation or infringement claims; changes in tax laws; import and export duty and tariff rates and uncertainties in or with the countries with which we conduct business; negative impact of any governmental investigations and associated litigation, including securities litigation relating to the conduct of our business; and force majeure events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.
The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the NASDAQ Global Select Market. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties identified under the heading “Risk Factors” in the Company’s latest Form 10-K and Form 10-Q filed with the SEC, which risks and uncertainties include tariffs and supply chain constraints that have affected, are affecting, and will continue to affect, general economic and industry conditions, customers, suppliers, and the regulatory environment in which the Company operates. Includes content supplied by Mobility Global Light Vehicle Production Forecast of July 16, 2026 (http://www.gentex.com/forecast-disclaimer).
Second Quarter Conference Call
A conference call related to this news release will be simulcast live on the Internet beginning at 9:30 a.m. ET today, July 24, 2026. Participants who wish to ask questions may register for the call at https://register-conf.media-server.com/register/BI04159734f80b4251b4b548ae7f443098. It is recommended that participants join 10 minutes prior to the event start, although they may register ahead of the call and dial in at any time during the call. Participants may listen to the call via audio streaming https://edge.media-server.com/mmc/p/wmvxyyhw. A webcast replay will be available approximately 24 hours after the conclusion of the call at http://ir.gentex.com/events-and-presentations/upcoming-past-events.
About the Company
Founded in 1974, Gentex Corporation (The NASDAQ Global Select Market: GNTX) is a leading supplier of digital vision, connected car, dimmable glass, fire protection technologies, medical devices, and consumer electronics. Visit the Company’s web site at www.gentex.com.
Contact Information:
Gentex Investor & Media Contact
Josh O'Berski
616.931.3505
| GENTEX CORPORATION AUTO-DIMMING MIRROR SHIPMENTS (Thousands) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||
| North American Interior Mirrors | 2,349 | 2,221 | 6 | % | 4,621 | 4,470 | 3 | % | ||||||||||
| North American Exterior Mirrors | 1,627 | 1,524 | 7 | % | 3,028 | 2,895 | 5 | % | ||||||||||
| Total North American Mirror Units | 3,976 | 3,746 | 6 | % | 7,649 | 7,365 | 4 | % | ||||||||||
| International Interior Mirrors | 3,928 | 5,313 | (26 | )% | 8,438 | 10,453 | (19 | )% | ||||||||||
| International Exterior Mirrors | 2,511 | 2,517 | — | % | 5,182 | 5,300 | (2 | )% | ||||||||||
| Total International Mirror Units | 6,439 | 7,830 | (18 | )% | 13,620 | 15,753 | (14 | )% | ||||||||||
| Total Interior Mirrors | 6,277 | 7,534 | (17 | )% | 13,059 | 14,923 | (12 | )% | ||||||||||
| Total Exterior Mirrors | 4,138 | 4,041 | 2 | % | 8,210 | 8,194 | — | % | ||||||||||
| Total Auto-Dimming Mirror Units | 10,416 | 11,575 | (10 | )% | 21,269 | 23,118 | (8 | )% | ||||||||||
Note: Percent change and amounts may not total due to rounding.
| GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net Sales | 651,299,705 | 657,858,210 | 1,326,742,831 | 1,234,631,300 | |||||||||||
| Cost of Goods Sold | 410,301,978 | 432,567,307 | 857,118,190 | 817,606,810 | |||||||||||
| Gross Profit | 240,997,727 | 225,290,903 | 469,624,641 | 417,024,490 | |||||||||||
| Engineering, Research & Development | 49,259,001 | 51,471,277 | 100,911,620 | 97,395,641 | |||||||||||
| Selling, General & Administrative | 50,037,461 | 48,515,355 | 99,829,295 | 78,448,360 | |||||||||||
| Impairment Charges | — | — | 2,800,000 | — | |||||||||||
| Severance Expense | 362,871 | 6,784,136 | 1,085,413 | 9,673,248 | |||||||||||
| Operating Expenses | 99,659,333 | 106,770,768 | 204,626,328 | 185,517,249 | |||||||||||
| Income from Operations | 141,338,394 | 118,520,135 | 264,998,313 | 231,507,241 | |||||||||||
| Other Income/(Loss) | (4,509,704 | ) | (3,049,996 | ) | (10,122,061 | ) | (2,409,520 | ) | |||||||
| Income (Loss) Before Income Taxes | 136,828,690 | 115,470,139 | 254,876,252 | 229,097,721 | |||||||||||
| Income Tax Provision | 22,644,919 | 19,819,689 | 42,271,422 | 38,573,226 | |||||||||||
| Net Income (Loss) | 114,183,771 | 95,650,450 | 212,604,830 | 190,524,495 | |||||||||||
| Less: Net Income (Loss) attributable to non-controlling interest | 505,646 | (389,134 | ) | 539,730 | (389,134 | ) | |||||||||
| Net Income (Loss) Attributable to Gentex Corporation | $ | 114,689,417 | $ | 96,039,584 | $ | 213,144,560 | $ | 190,913,629 | |||||||
| Earnings Per Share Attributable to Gentex Corporation(1) | |||||||||||||||
| Basic | $ | 0.54 | $ | 0.43 | $ | 0.99 | $ | 0.85 | |||||||
| Diluted | $ | 0.54 | $ | 0.43 | $ | 0.99 | $ | 0.85 | |||||||
| Cash Dividends Declared per Share | $ | 0.12 | $ | 0.12 | $ | 0.24 | $ | 0.24 | |||||||
| (1) Earnings Per Share has been adjusted to exclude the portion of net income allocated to participating securities as a result of share-based payment awards. | |||||||||||||||
| GENTEX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| June 30, 2026 | December 31, 2025 | ||||
| (Unaudited) | (Note) | ||||
| ASSETS | |||||
| Cash and Cash Equivalents | $ | 233,444,229 | $ | 145,645,715 | |
| Short-Term Investments | 9,366,704 | 5,386,566 | |||
| Accounts Receivable, net | 386,338,964 | 368,517,569 | |||
| Inventories, net | 518,950,411 | 516,253,617 | |||
| Other Current Assets | 101,183,924 | 92,631,001 | |||
| Total Current Assets | 1,249,284,232 | 1,128,434,468 | |||
| Plant and Equipment - Net | 780,173,903 | 790,935,378 | |||
| Goodwill | 360,849,822 | 357,211,919 | |||
| Long-Term Investments | 238,487,553 | 272,975,939 | |||
| Intangible Assets, net | 184,618,279 | 189,341,387 | |||
| Deferred Tax Asset | 112,638,362 | 108,338,592 | |||
| Patents and Other Assets, net | 91,729,143 | 81,355,151 | |||
| Total Other Assets | 988,323,159 | 1,009,222,988 | |||
| Total Assets | $ | 3,017,781,294 | $ | 2,928,592,834 | |
| LIABILITIES AND SHAREHOLDERS' INVESTMENT | |||||
| Current Liabilities | $ | 423,470,023 | $ | 387,542,969 | |
| Other Non-current Liabilities | 52,468,099 | 49,209,006 | |||
| Deferred Income Taxes | 909,631 | 908,922 | |||
| Redeemable Non-controlling Interest | 2,832,783 | 3,102,213 | |||
| Shareholders' Investment | 2,538,100,758 | 2,487,829,724 | |||
| Total Liabilities & Shareholders' Investment | $ | 3,017,781,294 | $ | 2,928,592,834 | |
Note: The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
GENTEX CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release, the Company has provided information regarding certain non-GAAP financial measures, which are reconciled to their closest GAAP financial measure in the following schedules. Use of the term "adjusted" or "excluding" in connection with a financial measure identifies and reflects a non-GAAP financial measure.
Beginning in the first quarter of 2026, the Company revised its non-GAAP presentation to include Adjusted Other (Loss) Income. As a result, prior-period non-GAAP measures presented herein have been revised to conform to the current presentation. Management believes the revised presentation enhances period-over-period comparability and provides investors with a more consistent view of the Company's performance. These revisions affect only the presentation of non-GAAP financial measures and do not affect the Company's previously reported GAAP results.
Non-GAAP Financial Measures: The Company has presented Adjusted Operating Expenses, Adjusted Income from Operations, and Adjusted Other (Loss) Income as supplemental measures of the Company's performance. Current quarter Adjusted Operating Expenses, Adjusted Income from Operations, and Adjusted Other (Loss) Income exclude impairment charges, acquisition related costs, and severance costs set forth in the table below.
| (Unaudited) | |||||||
| Three Months Ended June 30, | |||||||
| Consolidated 2026 | Consolidated 2025 | ||||||
| Gross Profit - GAAP | $ | 240,997,727 | $ | 225,290,903 | |||
| Inventory Purchase Price Step-up Adjustment Pursuant to ASC 805 | — | 2,498,442 | |||||
| Adjusted Gross Profit - (Non-GAAP) | $ | 240,997,727 | $ | 227,789,345 | |||
| Gross Margin - GAAP | 37.0 | % | 34.2 | % | |||
| Adjusted Gross Margin - (Non-GAAP) | 37.0 | % | 34.6 | % | |||
| Operating Expenses - GAAP | $ | 99,659,333 | $ | 106,770,768 | |||
| Less: | |||||||
| Acquisition Related Costs | — | 2,473,051 | |||||
| Severance Costs | 362,871 | 6,784,136 | |||||
| Adjusted Operating Expenses - (Non-GAAP) | $ | 99,296,462 | $ | 97,513,581 | |||
| Income from Operations - GAAP | $ | 141,338,394 | $ | 118,520,135 | |||
| Less: | |||||||
| Inventory Purchase Price Step-up Adjustment Pursuant to ASC 805 | — | 2,498,442 | |||||
| Acquisition Related Costs | — | 2,473,051 | |||||
| Severance Costs | 362,871 | 6,784,136 | |||||
| Adjusted Income from Operations - (Non-GAAP) | $ | 141,701,265 | $ | 130,275,764 | |||
| Other (Loss) Income - GAAP | $ | (4,509,704 | ) | $ | (3,049,996 | ) | |
| Less: | |||||||
| Impairment Charge - Technology Investment | (9,423,773 | ) | (6,182,000 | ) | |||
| Adjusted Other (Loss) Income - (Non-GAAP) | $ | 4,914,069 | $ | 3,132,004 | |||
Adjusted Net Income and Adjusted Earnings per Share: Adjusted Net Income and Adjusted Earnings per Share are presented as supplemental measures of the Company's performance. Adjusted Net Income is defined as Net Income adjusted for impairment charges, acquisition related costs, and severance costs during the second quarter of 2026 and second quarter of 2025. Adjusted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.
| (Unaudited) | |||||
| Three Months Ended June 30, | |||||
| 2026 Consolidated | 2025 Consolidated | ||||
| Net Income Attributable to Gentex Corporation - GAAP | $ | 114,689,417 | $ | 96,039,584 | |
| Inventory purchase price step-up adjustments pursuance to ASC 805, net of tax | — | 2,068,710 | |||
| Acquisition Related Costs, net of tax | — | 2,047,686 | |||
| Severance Costs, net of tax | 302,816 | 5,617,265 | |||
| Impairment Charges - Technology Investment, net of tax | 7,864,154 | 5,118,696 | |||
| Net Income (Loss) Attributable to Gentex Corporation - (Non-GAAP) | $ | 122,856,387 | $ | 110,891,941 | |
| Adjusted Earnings Per Share: | |||||
| Basic | $ | 0.58 | $ | 0.50 | |
| Diluted | $ | 0.58 | $ | 0.50 | |
The Company believes that the presentation of these non-GAAP financial measures provides insight into the Company's core performance and trends with respect to the same. Management of the Company similarly uses such non-GAAP financial measures in assessing the business internally.
This press release was published by a CLEAR® Verified individual.
